luận văn thạc sĩ nghiên cứu các nhân tố tác động đến việc sử dụng internet banking của khách hàng ở các ngân hàng thương mại việt nam

The Factors Affecting Customer Usage of Internet Banking in Commercial Banks: A Study in Vietnam Student: Tran Thi Linh Advisor: Assoc.Prof.. Keywords: Internet Banking, Commercial Banks

National Formosa University

Department of Industrial Management

The Factors Affecting Customer Usage of Internet Banking

in Commercial Banks: A Study in Vietnam

Student: Tran Thi Linh Advisor: Assoc.Prof Hu Chih- Hsiung

Deparment of Industrial ManagementNational Formosa University

Abstract

Nowadays, Internet Banking (IB) is becoming the primary trend in thefinancial market and a new product of banks Until now, all VietnameseCommercial Banks (VCBs) have implemented Internet Banking products to bringbenefits to customers and banks However, the number of users is low, mainly fromlarge Commercial Banks Research objective is to develop a theoretical researchframework on factors affecting the use of IB by customers in VCBs The studyaims to determine the impact of elements in the research theory model on theintention/level to use IB of customers, giving suggestions to VietnameseCommercial Banks in service development strategy The study used Unified Theory

of Acceptance and Use of Technology (UTAUT) (Vankatesh et al., 2003) with theadjustment and supplement to the environment of Vietnam Data was collected inViet Nam from several channels The study shows that factors (PerformanceExpectancy, Effort Expectancy, Social Influence, Facilitating Conditions,Safety/Security, Convenience and Demographic) have a significant positive effect

on Intention/Level to use IB of customers Based on the results, severalrecommendations and solutions have been proposed that are suitable for theCommercial Banks, and the State Bank in developing IB services in Vietnam

Keywords: Internet Banking, Commercial Banks, UTAUT, Intention to use, Level

to use

Acknowledgements

A completed study would not be done without any assistance Therefore, theauthor who conducted this research gratefully gives acknowledgment to theirsupport and motivation during the time of doing this research as a requirement ofcompleting my Degree of Institute of Industrial Engineering and Management First of all, I would like to express my endless thanks and gratefulness to my

through the process of completion of my thesis His encouragement and commentshad significantly enriched and improved my work Without his motivation andinstructions, the thesis would have been impossible to be done effectively.

My special thanks approve to my parents for their endless love, care and havemost assistance and motivation me for the whole of my life I also would like toexplain my thanks to my siblings, brothers and sisters for their support, and care meall the time

As of last, my sincere thanks come to all my friends during the time I study atNational Formosa University Their kindly help, care, motivation gave me strengthand lift me all the trouble for the rest of my life

Thanks!

Table of Contents

List of Tables

List of Figures

CFA : Confirmatory factor analysis

DTPB : Decomposed Theory of Planned Behavior

EFA : Exploratory Factor Analysis

CBs : Commercial Banks

IDT : Innovations Diffusion Theory

SEM : Structural equation modeling

TAM : Technology Acceptance Model

TPB : Theory of Planned Behaviour

TRA : Theory of Reasoned Action

UTAUT : Unified Theory of Acceptance and Use of TechnologyVCBs : Vietnam Commercial Banks

Chapter 1 Introduction

This chapter is an introduction that describes an overview of my study,including research background, research motivation, etc Besides, this study willpresent the reason to choose this topic

1.1 Research background

The development of information technology becomes a trend of growth andcompetitiveness of the Vietnam Commercial Banks (VCBs) To enhance theircapacity to compete from fresh products and services of foreign banks, VCBs arenot only necessary to improve the traditional profession but also to make thebanking application products modern E-Banking service in Vietnam was born asone milestone that marked the transformation of our country’s banking system E-Banking not only meets the practical needs of the people, but also opens upopportunities and challenges in the service to compete in the process ofinternational economic integration The benefits of providing Electronic Banking toclients, banks, and the economy are convenience, fast, and accuracy of thetransactions (Do Thi Ngoc Anh, 2017)

Internet Banking (IB) is one of the best services of E-Banking (The Bank.VN,2019) It is used to access and perform banking transactions over the Internet.When using IB, you can control your account online without having to go to thebanks Just have internet-connected devices and access codes that banks providethat The consumer can perform all transactions at anytime, anywhere (TheBank.VN, 2019) With banks, IB creates more profits, attracts more customers,saves costs, and is more competitive among banks With clients, IB offers a lot ofthings like check account, transfer money, payment online, etc helping save moneyand time IB turns into a necessary development step of the banking industry By

the end of April 2018, 94% of local banks had invested in digitalization, of which42% considered digital banking to be the top priority in their business strategy.Over the past three years, Internet Banking services in Vietnam have sped up by 6.3times (fintechnews.sg, 2018).

In Vietnam, over 25 years of birth and development, Vietnamese CommercialBanks system has continuously developed in scale, quality, and operationalefficiency The number of Commercial Banks (CBs) continues to increase (TheState Bank of Viet Nam, 2016) Now, CBs system in recent years has had severalpositive changes in services aimed to better-serving customers’ need Including E-Banking products and services in banks has helped banks diversify products andservices rather than stop at past traditional services, opening opportunities, and newcompetitiveness In the individual, the appearance of IB services is an effectiveaccomplishment, which broke the boundaries and limits on place and time in thesupply of banking services IB show up help banks meeting the demands of Internetpayments in Vietnam

But in Vietnam, IB service appears slower than in other countries likeMalaysia, Thailand (Nguyen Duy Thanh, Cao Hao Thi, 2011) Until now, all CBhave deployed IB services to serve consumers However, the habit of clients using

it is still low; the usage level is not much, mainly used in large CBs (Do Thi NgocAnh, 2017) Large businesses and people who work in offices in urban areas are theprimary users (tapchinganhang.com, 2017) Vietnamese people used to have a habit

of using cash which is reflected in the high proportion of card used to withdrawmoney via ATM (over 83.2% of ATM transactions are cash withdrawal), paymentturnover through card acceptance units, and IB service accounts for too little (NongThi Nhu Mai, 2015) This is also a problem for banks in developing IB service,exploiting the vast potential market of Vietnam Now, users are not faithful to the

IB service They move to use other service providers There are many reasons forthis, and possibly because customers have difficulty entering this service, they donot esteem and mistrust IB’s safety and security.

1.2 Research motivation

The world is entering the Industry 4.0 – an era in which technologies such asvirtual reality, everything connected to the Internet, 3D printing, big data, artificialintelligence are implemented in all areas of life (VnExpress.net, 2017) Thisrevolution is a significant trend affecting the socio-economic development of theworld, including Vietnam The Industry will strongly influence other sectors ingeneral and the banking industry 4.0 Digital banking model is a model operating

on a technology platform Through software and Internet systems, this model hasand will change the entire system format of banks (The Bank.vn, 2019) Banks willprovide new products with modern features such as M-POS, IB, Mobile Banking(MB), SMS Banking chip card, QR payment, electronic wallet, etc These newproducts and services will be increasingly developed to create favorable conditionsfor people to use more IB, MB, SMS Banking services are being used mostcommonly

Mobile Banking is a phone banking service with a feature that allowsconsumers to make a wide range of transactions with simple, convenient operation

on the mobile phone only (Timo.vn, 2019) Mobile banking is only for phones andmust have an Internet connection with the Internet (The Bank.vn, 2017)

SMS Banking is a mobile phone banking service that helps customers to tradewith their Bank by texting the specified syntax through the call station The featurealso serves as notification arising on account transactions for the customer(Timo.vn, 2019) Its disadvantages entirely depend on registered phone numbers

If the IB service is handled through a computer, MB is a telephone bankingservice operation only on the mobile phone (Timo.vn, 2018) SMS Banking is amobile phone banking service that helps customers to trade with their Bank bytexting the specified syntax through the call line The feature also serves asnotification arising on account transactions for the customer (Timo.vn, 2018)

IB is becoming popular and thriving in Vietnam (Huynh Song Hao, Bank ofForeign Trade, 2015) Nguyen Truong Giang (2008) suggested that if yourcomputer is connected to the Internet, you will be provided and guided with allbanking products and services It will be immediately noticed that IB can be used

on both Internet-connected laptops and phones (even phones cannot installapplications) while MB, SMS Banking is only for phones (The Bank.vn, 2017).More than expected, when registering for Internet Banking service, you can makethe following transactions with only one account Customers enjoy the benefits ofnew technology, and this is also a potential business opportunity for banks.Through the market, we can see that IB services implemented by many banks Butthere are places, and customers can only perform simple operations such aschecking accounts, transferring money, some areas, so many types of transactionsthat were previously required to go to the transaction room can be completed only

in minutes with the networked computer Even the ATM is the same Somemachines can inter-bank money transfer, credit card payment, insurance premiums,electricity bills, service registration, etc but many others cannot

The e-commerce market is continually developing The computer network hasconnected global financial markets into a unified and continuous market Byovercoming obstacles in space and time, it has helped reduce costs, facilitatingtransactions (Pham Thi Ha An, 2018) International banks are conducted smoothlyand quickly With the growing telecommunications infrastructure, taking care of

customers at banks by remote means through video calls becomes easy andconvenient (congthuong.vn, 2019) Shortly, virtual reality technology and three-dimensional images will replace human communication completely.

Vietnam has favorable conditions for access to Industry 4.0 With a youthfulpopulation composition, virtually live in the countryside, but the level of educationand access to new technology services of Vietnamese customers are high collated toanother country in the world The rate of mobile phone use of Vietnamese people isalso high; on average, a person owns over one mobile subscriber (The State Bank

of Viet Nam, 2017) In this context, the banking industry and the payment field inparticular in Vietnam have witnessed substantial impacts from the 4.0 industrialrevolution, along with introducing a series of technologies applied in the bankingand finance sector which have offered many opportunities and challenges for thebanking industry, comprise payment activities in Vietnam Because of industry 4.0with the use of economic interest by the size and sharing economy, the deployment

of high-tech digital technology involves internet connection, big data analysis,cloud computing, sensor technology, virtual reality, etc will help reduce transactioncosts, transport, management, contribute to financial savings for Vietnamese banks.Industry 4.0 also improves profits ensure high availability for the system in meetingcustomers’ demand for E-Banking services

Although bringing many profits to both banks and clients, the development of

IB services by banks in the country and around the world faces many difficultiesand challenges Worldwide, Internet Banking was formed early It is the mostgrowing in developed and developing countries are less developed at a slower pacefor some difficulties

Creating success in providing IB products is a critical issue for Vietnamesebanks now Recognize and accurately assess the influence of each determinant on

the use of IB by customers, whereby proffering suggestions to bank administrators

in the strategy of developing IB service with great significance important for CB’sViet Nam Stemming from the above argument, this research chooses the topic:

“The factors affecting customer usage of Internet Banking in the CommercialBanks” to research with the motivation give suggestions to VCBs in the tact ofgrowing IB service

1.3 Research question

IB is a coming hot trend and attractive to many users in Vietnam Customersenjoy the benefits of new technology, and this is also a potential businessopportunity for banks The features of the IB service are also appreciated asconvenient and straightforward to use The banks have made steps to update thelatest security technologies to ensure the benefits of the service users (Timo.vn,2019) Through the market, we can see that IB, mobile banking services, etc areimplemented by many banks But there are places, and customers can only performsimple operations such as checking accounts, transferring money, some sites, somany types of transactions that were previously required to go to the transactionroom can be completed only in minutes with the networked computer Even theATM is the same Some machines can credit card payment, insurance premiums,electricity bills, service registration, etc but many others cannot

Besides, in Vietnam, the Internet has been developing and innovatingpositively According to Dammio.com (2018), the Internet in Vietnam continued toevolve, and there were several small positive turns based on achievements gainedfrom 2017 and previous years

Figure 1.1 Statistics of internet users in Vietnam

Source: Dammio.com (2018)

With a inhabitants of 96.02 million and urbanization of 35%, the amount ofInternet users in Vietnam in 2018 reaches 64 million people, reaching 67% of thepopulace If staying in the top 10 countries with excellent access to the Internet,then this is will a happy signal help the promotion of technological development inVietnam

For the duration and frequency of Internet access in Vietnam

Figure 1.2 Statistics of equipment using technology in Vietnam

Source: Dammio.com (2018)

Compared to 2017, the average daily amount of time a user spends onaccessing the Internet on a PC / Tablet device is no different It is 6 hours, 52minutes Meanwhile, 2 hours 37 minutes is the time when users invest online withmobile devices, and 1 hour 21 minutes is the time to experience “music” every day

Mainly the frequency of users accessing the Internet in Vietnam is high.

Figure 1.3 Statistics on the duration and frequency of Internet access in Vietnam

Source: Dammio.com (2018)

Up to 94% of users are online and about 6% go online at least once a week.Thus, the frequency of users accessing Vietnam is high, and people consider theInternet as a “spiritual food” in the absence of modern life

IB transaction index in 2018 reached 187.3 million transactions, increased

by 44.3 million sales compared to 2017 (Dammio.com, 2018) But the level of cashpayment in Vietnam is still high and the ratio of cash in total amount is highcompared to many countries in the world, even though the infrastructure for onlinepayment has some specific development steps Viet Nam has the proportion ofInternet users, high social networks, but the Internet payment rate is notproportionately (VnExpress, 2018) 40% of Vietnam’s population has a bankaccount, but still, up to 90% of daily spending in cash, 99% use cash when payingunder $5 and heaving up to 85% of transaction at ATM is withdrawal(tapchitaichinhs.vn, 2019) These figures follow him, showing that the goal ofdeveloping non-cash payments will be a lot of challenges So what makes peopleprefer to use the cash more than online payment technology? The reason is that theclient lacks awareness of IB, on the benefits that IB brings Developing IB services

is challenging to implement by VCBs, and this is also the problem set out for VCBs

in developing Internet Banking services, exploiting large potential markets

Compared to developed countries, Vietnam’s institutional environment islacking and weak The economy of Vietnam is still the leading cash-consumingeconomy most people do not have the habit of using banking services, including IBservice The technology that banks in Vietnam are using is also worse than banks indeveloped countries It can also be said that in Vietnam, IB is not yet developed andwidely disseminated, and the elements affecting the use of IB by clients in Vietnamdiffer from those in developed countries Creating success in providing IB products

is a critical issue for Vietnamese banks today Thus, the question is: what are theelements affecting the use of IB by customers in Vietnamese Commercial Banks?

1.4 Purpose

The aims of this study are:

(1) Developing a theoretical research model of factors affecting the use of IB

(1) Enriching the understanding of IB and identifying factors, the influence ofelements on the intention and the level to use IB of current customers and

potential customers in Commercial Banks in the transition’s contenteconomy.

(2) Developing a theoretical framework on using IB of customers in CBs bythe transition economy

1.5 The structure of this study

The thesis has five parts Chapter 1 is an introduction that describes anoverview of the research background, research motivation, research question, etc.The second is the literature review that will summarize IB in the world and VietNam The chapter also mentioned the features and benefits that IB brings to us.Also, factors are affecting the use of IB services in commercial banks There willuse as fundamental to develop this study The next following is the researchmethod, which presents the research framework, research hypotheses, researchmethod and data analysis Chapter 4 would explain the empirical study andsynthesis results Finally, section 5 would discuss the results and research finding.This chapter concludes the discussion, conclusion and limitation, and future study.References plus appendix will be showed at the close of the thesis

Chapter 2 Literature Review

This section will also provide a more specific and comprehensive view of IBservices in the world and Vietnam in particular It also presents the development ofInternet Banking services at CBs in Vietnam This chapter also talks aboutfoundational theories

2.1 An introduction to Internet Banking

Internet Banking is a utility that was offered early in countries around theworld In 1980 a bank in Scotland (Tait and Davis, 1989) rendered it Theseservices are soon terminated because they are not accepted and used by bank

customers By 1990, information technology and electronic services developedrapidly, and banks start again providing this service (Daniel, 1999) Banksincreasingly expand Internet Banking services in many countries around the world.

Currently, IB has become the primary trend of banks in the USA, Europe,

UK, Europe, Asia-Pacific (Vuong Đuc Hoang Quan, 2016)

In America, transactions based on Internet banking have becomeeconomically and efficiently for the US banking sector to reduce expenses andimprove the quality of service for existing customers and the potential of globalbanks Safeena R et al (2011)

In the UK and European countries, most clients use IB to view deposit accountbalances, savings accounts, daily transaction checks, balance collation Using the

IB service helps banks in here reduce operational costs and employee work time atcustomer contact centers, affiliates to respond to customers and perform repetitivetransactions Customers also enjoy the fast, accurate service, ensuring privacy,saving time to travel (Vuong Duc Hoang Quan, 2016)

In the Asia Pacific, IB has been being deployed in many countries like China,Hong Kong, Singapore, and Thailand The Central Bank in China has encouraged

IB services since 2000 (Lad, 2015) HSBC began to provide IB services to1/8/2000 in Hong Kong In Singapore, IB service has appeared since 1997 InThailand, Internet Banking service is available from 1995 (Moinuddin, 2013).Especially after the financial crisis of 1997, the Thai banks with the pressure to cutexpenses have turned to promote the provision of Internet Banking services Theyconsider this a solution to reduce the expenses of workers and increase thesatisfaction of clients

Banks in developing countries are also gradually providing IB services but at

a slower rate than developed countries India in 2008 had a website, 62% of bankshad transactions via the Internet (Malhotra, 2010) but the use of this service inprivate, state and foreign banks was uneven (mainly was in the state bank) Largebanks have also provided IB service in Brunei (Seyal et al., 2011), but the habit ofclients using the service is not high

There are many decisions about Internet Banking Loyd, (2007); Shao,(2007); Lee, (2009) argue that IB is an Internet portal that helps users to usedifferent banking services, including investment payment bill According toRamath et al (2010), IB is the latest initiative in modern banking services IBestablished as an active distribution channel for Traditional banking products.Sullivan and Wang (2005) consider IB a process innovation, whereby users carryout their banking transactions without having to go to bank staff It also allows non-bank clients to access banking sites in the public network when MB or bankcomputers only provide limited closed systems for existing customers Speaking bySara (2007), IB is a banking service as the launch of banking services, loan forms,account balance requests, transfers, and provided through the Internet IB servicesare:

- Clients don’t have to gain any additional software or store data on theircomputers because of all transactions occur on Internet server servers

- Customers can carry out their banking services wherever they want, need tohave a computer, a modem, Wi-Fi or 3G regardless of where they are (athome, at an office, or in a place outside the country)

- Customers can use banking services 24/7, and 365 days/ year

- Customers can pay for financial services such as interest, insurance,securities investments, etc.

In Vietnam, IB service is a banking application provided via the Internet,including information and services from service providers; search service,customer information, account balance, and other information requirements(The State Bank of Viet Nam, 2011)

It can be said Internet Banking is an application that banks provide users viathe Internet to query account information, transfer, pay bills, open online accounts,free cards, and post, signing online loan, etc on the Bank’s website of Internetaccess without going to the banking counter (E-Banking 2019) Customer canselect the transaction they want Internet Banking is a way to distribute productsand services to home, office, school, anywhere, and anytime

2.2 Advantages and disadvantages of Internet Banking services

2.2.1 Advantages of Internet Banking services

(1) About customers

IB service is quick and convenient, helping customers save a lot of time tothe Bank to perform transactions, suitable for clients who have a bit time to dealwith the Bank directly

Customers can trade with the banks via the Internet at any time (24/7) andanywhere quickly, conveniently and without customers must go to the banks, thetransactions are confirmed immediately (Wang et al., 2003; Pew, 2003)

Lower fees are understandable for Internet Banking services because ofsavings in human resource costs, depreciation of fixed assets if banks must serve bydirect transaction method at bank branches

Customers can transfer money, easily manage accounts, easily monitor theiraccounts at any time and can quickly identify all any fraudulent activity or threat tothe customer’s mind before it can happen.

Internet Banking provides customers with the latest information on exchangerates, look up financial information of partners, etc so help them increaseinvestment opportunities, increase income

And also, with the standardization of IB service, clients are serveddedicatedly and accurately instead of having to depend on different attitudes andqualifications of bank employees

(2) About banks

IB services help save personnel expenses and operation space at the counter

Internet Banking services help banks expand their networks and increasecompetitiveness without investing in building branches

With the Internet connecting the world, through Internet Banking, banks canincrease the ability to implement the globalization strategy without having to openmore branches abroad

(3) About the economy

Fast internet banking services, and 24/7 support help speed up the flow ofmoney increase efficiency for the economy

2.2.2 Disadvantages of Internet Banking services

(1) About customers

Customers cannot perform a cash deposit When customers want to deposit,save or wish to withdraw cash to spend, they cannot play via IB service but

customers must go directly to the Bank or can withdraw cash at ATM.(Vietcombank, 2019).

Security: A disadvantage of Internet Banking is that computer hackers andscammers can threaten security capabilities Hackers can attack customer accountinformation, stolen money on the account

Internet Banking is difficult for beginners, with older people Especially forthe elderly, they have difficulties in using the Internet, remember the loginpassword, how to use the service with utilities

Clients cannot do the IB service if the device has no internet connection orcustomer transactions become difficult, making the transaction unsuccessful ifsuddenly disconnected from the Internet or a slow connection

(2)About Banks

The high cost of purchasing and maintaining machinery and equipment.Wang et al (2003) said that one of the main disadvantages of IB is the expenses ofbuying and maintaining computer equipment Pooja (2010) also noted that thebanks providing Internet Banking services is profitable, the operational efficiency

is higher than non-supplying banks, but banks must invest in technologicalequipment at a high cost

Quality of Internet banking service depends on network quality, transmissionspeed, and terminal equipment This affects the quality of service delivery more orless, to the number and extent of customer use of this service

With a potentially risky Internet Banking service such as hackers, computerviruses can have significant harms to the Bank, losing customer trust to the Bank

Internet Banking is restricted in service provision In rural and mountainousareas, they lack the means of Internet access devices many cities do not havewaves It is difficult to access and successfully carry out transactions via IB.

2.3 The foundation theory for studying the behavior of accepting Internet Banking customers

Many theories are used as a platform to study Internet Banking around theworld Tan and Teo (2000) use the Decomposed Theory of Planned Behavior(DTPB) in studying the acceptance and using Internet Banking in Singapore Ingoand Bomil (2002) in Korea use Technology Acceptance Model (TAM) studying theadoption of Internet Banking Ali Saleh and Khalil (2013) use the Theory ofPlanned Behaviour (TPB) to research, etc

1 Unified Theory of Acceptance and Use of Technology (UTAUT)

Venkatesh developed UTAUT et al (2003) UTAUT based on thecomparison of theoretical models of consumer acceptance of technology inprevious studies like TRA, TPB, TAM, IDT, DOIT, MM (Dynamic Model), andMPCU (PC source model) By comparing and analyzing factors, scales of elements

in 8 theoretical models in explaining the technology adoption of customers,Venkatesh et al (2003) developed theoretical models

Performance Expectancy

Effort Expectancy

Behavioral Intention

Use Behavior Social Influence

Facilitating Conditions

Voluntariness of use Experienc

e Age

Gender

Figure 2.1 Unified Theory of Acceptance and Use of Technology – UTAUT

Source: Vankatesh et al (2003)

Research on the acceptance of IB by customers has some studies usingUTAUT theory as research by Foon et al (2011) in Malaysia, by Koloud andGhaith (2013) in Jordan, Dong (2009) in China, etc These studies add some factors

to the original UTAUT model For example, Foon et al (2011) added the element

of Computer Efficiency, Concern, Confidence; Saibaba and Naryana (2013) addedthe factor of Computer Efficiency, Awareness, Confidence; or Dong (2009) addedthe element of Service quality, Self-confidence Research results different in theinfluence of elements on the intention to use IB of consumers between studies Thenumber of studies using UTAUT to explain the behavior of using IB of customers

is not much compared to TAM, TPB but not so that this theory is less valuable inteaching the practice of using IB compared to other models (Koloud and Ghaith,2013)

So Study on using a theory UTAUT of Venkatesh et al (2003) as the basis ofresearch theory to explain the behavior of clients using IB service in VCBs Reasonfor:

 TRA, TPB, DTPB, TAM, IDT models are limited in explaining the intention

of using the technology of customers

 The theory is said to be most effective in solving the intention and behavior

of accepting the use of technology, accounting for 70% of the difference inthe intent’s interpretation to use technology (Venkatesh et al., 2003) and it isbuilt on the similarity of and previous models have tested the measuringscale of the variables

 Internet Banking is one of the new technology applications put into use inVietnam Customers in Vietnam with a cash habit are challenging to changeconsumer behavior is often affected by others, they are afraid of complicated

difficulties; they are so scared of the insecurity and theory UTAUT says theintention of using technology of human beings are influenced by thefollowing factors: Performance Expectancy (PE), Effort Expectancy (EE),Social Influence (SI), Facilitating Conditions (FC).

2 Performance Expectancy (PE)

Performance Expectancy: individuals believe that using technology systems

will help their work achieve greater efficiency The PE is the belief of individualsthat using technology systems will help their work achieve greater efficiency(Vankatesh et al., 2003) By UTAUT theory, the factor PE is measured by 4variables to observe the effectiveness of using technology system (usefulness of thetechnology system in work, increasing productivity and completion quick actionand increased investment opportunities) In this study, PE is thatindividuals/organizations believe that using IB will improve their performance

3 Effort Expectancy (EE)

Effort Expectancy is understood: people can easily take part in the order and

use the system The EE is measured by 4 observable variables (interaction with thesystem is easy to understand, easy to use user skills, easy to use the system, easy tolearn to use the system) In this study, the EE is defined as the level ofindividuals/organizations who easily log in and use Internet Banking

4 Social Influence (SI)

Social Influence is thought to be an important issue that affects the

individual’s perception; they will use the new system SI in the UTAUT model ofVenkatest et al (2003) is measured by 4 observed variables (influential people,important people, managers, bank support) This study is based on the revision ofVenkatesh et al (2003) SI is defined as an individual’s perception and use ofInternet Banking that is strongly influenced by others around them

5 Facilitating Conditions (FC)

Facilitating Conditions (FC) is understood: individuals believe that the

support of the organization and facilities will promote their use of the systemquickly By UTAUT theory of Venkatest et al (2003), the factor FC is measured by

4 observed variables (necessary resources, necessary knowledge, compatible withother systems, ready support) This study is based on the definition of UTAUTtheory adapted to research content FC is defined as individuals/organizations thatbelieve that the bank’s support for IB services, both technical and servicerequirements, will make it easier for them to use

Safety/Security and Convenience are two factors that will be added to myresearch model The security factor is one of the biggest problems in electronicbanking when convenience will always be the issue that people care about in thecurrent technology era People will be excited and embrace new things if thosethings help them handle situations better, faster So I want to give two factors above

do research the use of IB of the clients in Vietnam

6 Safety/Security (S)

Safety/Security (S): There are many different concepts of Safety/Security.

According to Honei and Nasim (2009), S is defined as the level of trust that anorganization will handle all personal information safety and security transactions.Wadie and Mohamed (2014) argue that S is the user’s perception of combatingsecurity threats and controlling personal information in the online environment Or

in the study of Amin et al (2011) on sustainable Internet Banking model (in thecase of Iran), the factor “Security” is defined as the degree to which the website ofthe bank is safe and confidential transaction information of customers In this study,

S is considered to be the level of customer confidence that transactions via InternetBanking of personal details are secure and financially secure

7 Convenience (C)

Convenience: According to Pew (2003), C has been identified as an essential

element in the use of new technology Alam et al (2006) said that: the C is thatcustomers accept to use IB to be more convenient, less complicated and morecompatible with new technology Sharman (2006) argues that the C of IB is notmerely accessible 24/7, saving time when Internet Banking is an Internet extensionthat helps Internet Banking users know More services meet their needs and needsare conveniently implemented Thus, this study, C of Internet Banking is thatcustomers can carry out banking transactions regardless of time 24/7, irrespective

of where they are I have many utilities except cash withdrawal

The above factors are considered having an actual direct act on the intention

of individual behavior and technology use behavior The intention of individuals touse technology is also affected by age, gender, experience, etc

8 Intention to use (IN)

Davis (1985) argues that intent to use is the degree to which someone hasdeveloped a plan to perform or not to perform certain specific behaviors in thefuture Davis and colleagues (1989) argue that the IN is the willingness of a person

to accept technology The definition of Davis et al (1989) is used in several studies,such as the study of Sara (2007), Gang Liu, and colleagues (2008) In this study, theintention to use IB is the willingness of someone who accepts to use IB

9 Level to use (L)

There are a few studies on the elements affecting the level of IB use by peoplewho are using it L is said to be the regular usage level of clients on IB service inthe bank on how many times to use or not in a period (Kholoud, 2009; Koloud and

Ghaith, 2013) Therefore, the level to use IB of customers in this thesis is

mentioned as the regular use of IB service of clients

Chapter 3 Research Methodology

The next following is the research method, which presents the research

framework, research hypotheses, research method, data collection, and analysis

techniques, and this study offer questionnaire design

3.1 Research framework

In this study, besides the 4 factors (PE, EE, SI, FC) of UTAUT theoretical

model of Venkatesh et al (2003) Also, there are two additional factors

(safety/security (S), Convenience I) to study their impact on the

client’s intention to use/level to use IB In the theoretical model,

UTAUT also considers the effect of variables (age, gender, Internet

experience, voluntary use) in the structural model relationship In

my study, regulatory variables like age, gender, Internet experience

are also combined to explore the impact of factors on IB customers’

intention to use/level to use

Convenience I

3.2 Hypotheses

There are seven hypotheses to be used in this study

1 Relationship between Performance Expectancy and intention/level to use Internet Banking

The PE is the trust of individuals that using technology systems will help theirwork achieve greater efficiency (Vankatesh et al., 2003) Factors: Useful feeling inTAM, TAM-TPB model, Relative advantage in IDT model, External motivation indynamic model (MM), Suitable jobs in PC model (MPCU), expected results in themodel of social cognitive theory (SCT) have the same measurement defined as thefactor of effectiveness (Koloud and Ghaith, 2013) In studies of the adoption of IB,some studies have used elements that are roughly similar to the PE factor, such asUseful Comments (TAM), Relative Advantage (IDT) Individually defined usefulbeliefs that use technology systems will improve their work efficiency (Davis et al.,1989) Relative advantage is defined as an innovation that will yield betterperformance than before (Roger, 1995) PE is an essential factor affecting the use

of IB by customers, and therefore, it receives a lot of attention from previousstudies It is the expectation of an individual or organization when using newtechnology to increase work efficiency And then, we have a hypothesis:

H1: Performance Expectancy has an affirmative act on intention/level to use

to be similar: Easy to use feel (TAM), Complex (IDT and MPCU), (Koloud andGhaith, 2013) Easy to use personal defined perception believes that the use oftechnology systems will not require effort (Davis et al., 1989) Complexity isdefined as the degree to which we perceive and use innovation Acceptance of usewill be less if the change is recognized as complicated or challenging to use (Roger,1983) I base experimental studies on IB use UTAUT platform theory on thedefinition of UTAUT Thus, we have hypotheses:

H2: Effort Expectancy has an affirmative act on intention/level to use IB of customers.

3 Relationship between Social Influence factor and intention/level to use Internet Banking.

As stated by Venkatesh et al (2003), social influences are thought to be theimpact of others on the individual’s feelings that will have a substantial effect ontheir use of the new system The factor SI has the same structure as the factors inthe models: Subjective norms (TRA, TAM, TPB, DTPB), social influence (MPCU),Figure photo (IDT) (Koloud and Ghaith, 2013) The factor SI is interested in someempirical studies of Internet Banking There are many studies using the definition

of social influence factor of Venkatesh et al (2003) to study the impact on theintention to accept Internet Banking use by customers in banks as Foon (2011),Saibaba and Naryana (2013), Gang Liu and colleagues (2008), Dong (2009),Kholound Ibrahim (2009), Koloud and Ghaith (2013), Emad and Michael (2009),Chung- Hung (2013) As a result, hypotheses are:

H3: Social Influence has an affirmative act on intention/level to use IB of customers.

4 Relationship between Facilitating Conditions factor and intention/level to use Internet Banking

With Venkatesh et al., (2003), favorable conditions are that customers believethat organizational support and facilities can help them use everything easily Theabove statement is the synthesis of sensory control behavior (TPB, DTPB),compatibility (IDT), facilitating (using PC model (MPCU)) (Koloud and Ghaith,2013) An overview of research on Internet Banking shows that there is a casestudy in Malaysia’s KualaLumper by Foon et al (2011), Jodan of Emad andMichael (2009) uses both UTAUT a theory We have a hypothesis:

H4: Facilitating conditions has an affirmative act on intention/ level to use

et al (2006) argued that “Web site security is believed to be sensitive and securetransactions through the bank’s website.” Or another idea is that security risksoccur when customers worry about transferring money from their account or that

others can know their personal financial information without their permission(Littler et al., 2006) From that, we have a hypothesis:

H5: Safety/Security has an affirmative act on intention/level to use IB of

al (2006), the convenience is that customers accept to use IB to be moreconvenient, less complicated and more compatible with new technology Sharman(2006) argues that the convenience of IB users is not merely accessible 24/7, savingtime when IB is an Internet extension that helps IB users know More services meettheir needs and needs are conveniently implemented The next is a hypothesis:

H6: Convenience has an affirmative act on intention/level to use IB of customers.

7 Relationship between Demographic factor and intention/level to use Internet Banking

Gender, age, income, education level, Internet experience are the mostinfluential factors in using IB IB is high-tech application of the bank, so InternetBanking users are usually men, young people, educated people, high-income,experienced use Internet These factors have been considered by most of theprevious studies as specific characteristics of IB (Jaruwachirathanakul et al., 2005;

Martins et al., 2014) This study adds to the place to stay a factor of customers,where there is a distinction that affects the use of IB Because clients in urban areasare more exposed to modern information technology, they are busy with less worktime to go to the bank counter Customers in rural areas, although far from banks,

or few banks to trade but prefer to deal directly at the table because they have littlecontact with modern information technology, they are concerned about security intransactions while their time is freer Therefore, the demographic element ofcustomers in this study is gender, age, learning, income, Internet experience, theresidence will be considered concerning the intention to use IB of clients.Specifically, the study of this issue in previous studies is: Gender, age, income,learning that affects the acceptance of IB by customers (unused/used people) use(Bussakorn et al., 2005; Jun Wu, 2005; Al-Somali et al., 2008; Wadie, 2011;Donnelie and Rangarirai, 2013) Specifically, men, young people, people with highlearning and high incomes are more likely to use IB than women, the elderly, havelow learning, and have low-income entry The number of male customers is more

IB than female clients (Shergill and Li, 2005) Young people using IB services aremore confirmed in the study of Apostolos et al (2012) in Greece, Yiu et al (2007)

in Hong Kong Or Heaney and Joo-Gim (2007) research in Australia also showedthat X generation (29-40 years) is more used than Y generation (18-29 years old),but Y generation used more often, use more virtual products, use for more extendedperiods Besides, the Internet experience factor shown by previous studies has animpact on the adoption of IB, and there is a difference between less experiencedand more experienced Internet groups (Bussakorn et al., 2005; Honei and Nasim,2009) And we have:

H7: Demographic factors have an affirmative act on intention/level to use IB

of customers

3.3 Research structure

The thesis uses a combination of popular methods in economic research such

as methods of analysis, synthesis, professional practices such as statistics,description, comparison, analysis, integration, and investigation With purpose can

be determined the influence of elements in the research theory model on theintention to use/level to use IB of customers from that give suggestions toVietnamese Commercial Banks in the strategy of developing IB service

Data in research was fetched from a survey of passengers who used services

at CBs in Vietnam To create favorable conditions for surveyors, this research hastwo editions of the questionnaire Vietnamese and English The answerer willaccomplish the senses with the publication they can feel more understandable andtell of their experience with Internet Banking

The survey has three sections Part one is section concerns about experienceand knowledge about the Internet of the customer I designed part two to ask aboutperception and expertise in Internet Banking And the last is part three which willsection about respondent’s demographic characteristics

The figures were synthesized for almost two months from the middle ofJanuary to the center of March 2019 by the Internet’s support and customer Thesurvey was uploaded on Google docs then sent to the author’s friends throughFacebook and Email Eventually, there are 453 responders complete questionnaires(218 people belong to the group of people who have not used IB, and 235 peoplebelong to the group customers are using IB)

The questions in this section use the five-point Likert–type scale The scale isoften used to measure perspective Each point on the scale will show the level ofconsensus of the respondent with the viewpoint proposed Respondent’s

perspective will fluctuate from level 1 = strongly disagree, 2 = disagree, 3 =normal, 4 = agree and 5 = strongly agree

Measurement scale elements affect the intention/level to use IB in this studywere adapted from previous studies to help the survey be more reliability andvalidity The whole is 34 questions in that PE (5 items), EE (5 items, SI (5 items),

FC (4 items), S (4 items), C (4 items), IN (3 items), L (4 items) Table 3.1 will showall measurement scale

Table 3.1 Measurement Scales

PE3-Using IB will significantly increase the quality of my

transactions.

Emad & Michael (2009) PE4-Using IB can save bank transaction costs by not having to go to

PE5-Using IB will increase the efficiency of my work many times.

EE2- I feel IB is easy to use.

EE3- Learning to operate with IB is easy for me.

EE4- I feel that IB is flexible to interact. Emad & Michael

(2009) EE5- I easily log in and take the next steps in Internet Banking. Do Thi Ngoc Anh

SI2- The people who matter to me (family, friends, etc.) think I

should use IB.

SI3- People on social networks (Facebook, Twitter) should use IB. Do Thi Ngoc Anh

(2017) SI4- The bank has supported the use of Internet Banking.

Venkatesh et al (2003)

SI5- The bank’s senior managers have had useful policies (direct

referrals, leaflets, tests, etc.) in using Internet Banking.

FC2- I have the knowledge to use Internet Banking.

FC3-IB is compatible with other systems I am using.

FC4-One department (one or a group of employees) is ready to assist

with the difficulties of IB.

Table 3.1 Measurement Scales (cont)

S2- I trust that it will protect my information when conducting

Internet Banking transactions.

S3- I trust transactions through Internet Banking as a transaction at

the transaction office.

S4- My financial information is secure when I use Internet Banking.

C2- I can make transaction Internet Banking anywhere in the world.

C3- Internet Banking requires no card, just a device (computer,

phone, etc.) with the Internet connection.

C4- I can check transaction details and print out statements as

IN2- Using Internet Banking to handle bank transactions is

something I will do.

IN3- I think with myself, the use of Internet Banking service can

meet all the needs of banking transactions.

L2- I regularly use Internet Banking as a source of information on

banking transactions.

L3- I regularly use Internet Banking, not just one bank.

L4- Besides regular use of Internet Banking, I also use other

E-Banking services (ATM, Mobile E-Banking, Phone E-Banking, etc.).

3.4 Research Methods

In this study, statistical analysis is performed as follows First, test thereliability of conceptualized research model by testing the value of Cronbach’sAlpha coefficient by using SPSS Next use EFA for multivariate analysis based onthe correlation between variables Then, the fit of the measurement model with datawas tested by using confirmatory factor analysis (CFA), from that examine bothdiscriminant validity and convergent validity value to assess the measurement

model Finally, structural equation modeling (SEM) was applied using maximumlikelihood estimation to determine the assessment of the fit with data for thestructure model and also the test hypothesis Moreover, the study also usedBootstrap to assess the reliability of the estimates in the evaluation model Bytesting whether the regression coefficients in the SEM model are well estimated.

1 Research reliability and validity

Researchers often use Cronbach’s Alpha coefficients to assess the reliability ofthe scale of the survey Nunnally (1978) suggested Cronbach’s Alpha from 0.8 up

to almost 1; the range is excellent It is usable from near 0.7 to nearly 0.8.Cronbach’s Alpha from 0.6 or more is available In this study using CronbachAlpha α ≥ 0.60 is an acceptable scale in terms of reliability and observed variableswith variable correlation coefficient – a total higher than or equal to 0.3

2 Exploratory Factor Analysis (EFA)

The EFA analysis method belongs to the interdependent multivariate analysisgroup, so there is no independent and dependent variable, but it is based on thecorrelation between the variables EFA is used to shorten a set of k observedvariables into a set of F (F <k) more significant factors this reduction is based on alinear relationship between factors with the observed variable To determine thesuitability when using EFA, this study use Barlett and KMO analysis Bartlett’s test

of sphericity used to consider the correlation matrix is a unit matrix, which is amatrix with zero elements and a diagonal equal to 1 KMO test helps to comparethe magnitude of the correlation coefficient between two variables with theirrespective correlation coefficients To use EFA, KMO must be ≥ 0.50, and theweight difference is ≥ 30 (Nguyen Dinh Tho, 2011)